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Q25. Consider the following statements: 1. Hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit. 2. These speculative capital flows are called ‘Hot money’ because they can move very quickly in and out of markets. Which of the above statements are correct?

Answer»

Q25. Consider the following statements:

1. Hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit.

2. These speculative capital flows are called ‘Hot money’ because they can move very quickly in and out of markets.

Which of the above statements are correct?




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